Economic Leaders "Ready to Immediately Activate Market Stabilization Measures Including Stock Market Stabilization Fund"

Emergency Macroeconomic and Financial Issues Meeting Held

Choi Sang-mok, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance, is presiding over an emergency macroeconomic and financial issues meeting on the 9th at the Korea Federation of Banks in Jung-gu, Seoul. (Source: Ministry of Economy and Finance)

To prevent increased volatility in the financial and foreign exchange markets due to political instability, economic leaders stated, "All available market stabilization measures will be immediately implemented according to the prepared contingency plans for various scenarios," and added, "We are also ready to activate other market stabilization measures such as the stock market stabilization fund at any time."

Choi Sang-mok, Deputy Prime Minister and Minister of Economy and Finance, Lee Chang-yong, Governor of the Bank of Korea, Kim Byung-hwan, Chairman of the Financial Services Commission, and Lee Bok-hyun, Governor of the Financial Supervisory Service, announced this during the emergency macroeconomic and financial issue meetings (F4 meetings) held daily, including on the 9th.

The economic leaders stated, "Given the ongoing domestic and international uncertainties, related agencies will maintain a closer emergency cooperation and response system to minimize the economic impact of political situations, mobilizing all capabilities to respond."

Since the declaration and lifting of martial law on the 4th, the government has announced market stabilization measures including unlimited liquidity supply until the stock, bond, short-term money, and foreign currency markets fully normalize, as well as a bond market stabilization fund and corporate bond and CP purchase programs worth up to 40 trillion won.

In addition, the economic leaders said, "We will do our utmost to ensure that all available market stabilization measures can be immediately implemented according to the prepared contingency plans to prevent excessive market volatility."

Regarding the stock market, they stated, "300 million won has already been invested in the value-up fund expected to help supply and demand, with 700 million won scheduled for this week and 300 million won next week to be executed sequentially." Next week, a second fund worth 300 billion won is planned to be additionally established. The economic leaders added, "We are also prepared to activate other market stabilization measures such as the stock market stabilization fund at any time."

Regarding the bond market, they said, "If necessary, emergency buybacks of government bonds and simple purchases of government bonds by the Bank of Korea will be immediately implemented. For the foreign exchange and foreign currency money markets, sufficient foreign currency liquidity will be supplied through foreign currency RP purchases if needed, and structural foreign exchange supply and demand improvement measures to promote foreign exchange inflows will be finalized through consultations with related agencies and announced in December."

Furthermore, a letter in the name of Deputy Prime Minister Choi will be sent to international credit rating agencies, international financial organizations, overseas investors, finance ministers of major countries, and international investment banks (IBs), and communication will be strengthened by dispatching international financial cooperation envoys to international organizations and major countries to minimize the impact on external credibility.

To this end, the Deputy Prime Minister-led Economic Relations Ministers' Meeting will serve as the control tower, and through the 'Economic and Financial Situation Monitoring TF,' not only finance and foreign exchange but also consumption, investment, exports, employment, prices, and overall economic and livelihood conditions will be monitored 24/7 without gaps, with proactive measures taken against market instability factors.

The economic leaders emphasized, "Participants agreed that the market economy system is functioning well across our economy and society, and based on past cases, shocks caused by non-economic factors such as politics were temporary and limited, with almost no economic impact in the medium to long term," and added, "Since our economy has the resilience to successfully overcome various past crises, we once again urge citizens and businesses to calmly continue their economic activities as usual."